NEW YORK (AP) — A judge Thursday is set to rule on whether movie-rental chain Blockbuster Inc., operating under Chapter 11 bankruptcy protection, can sell itself to a group of investors or will be forced to liquidate.
The U.S. Bankruptcy Court for the Southern District in New York will rule on whether a bid by a group of Blockbuster’s debtholders for $290 million should be approved. Last week, a U.S. bankruptcy trustee filed a motion to instead convert the Chapter 11 sale process into a Chapter 7 liquidation that would close its stores.
The judge will hear objections from both sides during the hearing.
Blockbuster used to be the dominant U.S. movie rental chain. It has lost money for years as customers shifted to Netflix, video on demand and DVD rental kiosks.
